Choice Hotels, Wyndham, and My Place Executives Discuss Data Centre Impact on Extended-Stay Demand
The rapid expansion of data centre projects across the United States is significantly influencing demand for extended-stay hotels, with executives from Choice Hotels, Wyndham, and My Place Hotels sharing varied perspectives on its long-term sustainability, according to a Hotel Dive report.
Infrastructure Growth Drives Accommodation Needs
Data centre construction in the United States has emerged as a substantial factor driving demand for extended-stay hotel accommodation, a trend observed by hospitality professionals. This infrastructure development has particularly impacted markets in Texas, Virginia, and Georgia over the past decade, with recent expansion into new US regions. The demand primarily stems from workers involved in the construction phase of these facilities. However, the long-term sustainability of this demand is a point of discussion among industry leaders, as reported by Hotel Dive on July 21, 2026.
Significant Investment Fuels Demand
Investment in US data centre construction has seen substantial growth over the last decade and is projected to continue its ascent. PwC reported in May that annual spending on data centre infrastructure is forecast to increase by 116% between 2024 and 2027, rising from $53.2 billion to $118.4 billion. Matt McElhare, Vice President and Extended Stay Segment Lead at Choice Hotels, noted that this development cycle fuels considerable demand for extended-stay properties, especially during the construction phase. Atlanta, Phoenix, and Austin, Texas, have recently emerged as key areas for data centre construction, while Wyndham Hotels & Resorts’ Mike Mueller also highlighted growing pipelines in Pennsylvania and Illinois.
Debate on Long-Term Sustainability
The long-term viability of this data centre-driven demand remains a key concern for hotel operators. Ryan Rivett, CEO of My Place Hotels, expressed skepticism, comparing the demand to an “oil boom and bust” where it diminishes once construction concludes, as data centres require minimal permanent staff. He also questioned if data centres genuinely foster population growth. Conversely, Wyndham Hotels & Resorts’ Mike Mueller argues that such projects can lead to population growth through regional development, including ongoing maintenance teams, energy infrastructure jobs, and subsequent residential and community facility construction. Choice Hotels’ McElhare acknowledged uneven demand, noting "massive clustering effects" in some markets suggesting a multiyear forecast, while others present less certainty.
Strategic Adaptations for Hotels
For the hospitality sector, the fluctuating nature of data centre construction demand necessitates adaptable strategies. Choice Hotels is considering expanding its extended-stay conversion brands in markets with uncertain long-term demand. This approach allows properties to quickly adapt to immediate accommodation needs, in contrast to new constructions that take years to complete. The divergence in executive perspectives underscores a critical watch point for hotel developers and operators: whether these infrastructure investments translate into sustained community growth that underpins long-term extended-stay occupancy, or if demand will largely dissipate post-construction.
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